Nanogrids: A New Opportunity for the Solar Industry & its Customers

on July 23, 2020

What exactly are nanogrids? Think of a microgrid, but:

  • Smaller, which means quicker and easier to deploy and more affordable
  • Localized, so customer centric and able to be tied to other nanogrids, microgrids and the utility macrogrid
  • Able to be aggregated, which can create a coordinated response to support other grids in times of emergencies

Both nanogrids and microgrids are forms of local energy—self-sufficient systems with power generation, controls and often energy storage—that serve customers within a discrete footprint. Although they can operate on their own, most North American microgrids and nanogrids are also connected to the central grid. They are able to island from the larger grid and operate independently during power outages. Electricity continues to flow to homes and buildings served by microgrids and nanogrids even as others around them are in the dark. This is a prime reason for their installation, one that is especially important given that the U.S. is experiencing more outages caused by storms, wildfires and other dangerous conditions that affect the safety of communities. Meanwhile, power outages to homes, a prime market for nanogrids, are no longer a mere inconvenience; they can carry significant costs now that more people are working from home. Indeed, COVID-19 created situations where high ranking corporate officials were operating from their houses, shifting the corporations’ de facto headquarters to residences that lack the kind of backup energy systems more likely to be found at their office complexes.

But it’s not only electric reliability that makes these systems attractive. Because they are tied to the electric grid, they may supply services to it and be paid for doing so. For example, a utility might pay to tap into a nanogrid’s battery at a time when demand is high on the electric grid and it needs more energy, such as a hot day when air conditioning use is high.

Nanogrid and microgrid owners also can save money if they use energy from their systems, instead of the grid, during times when grid power is expensive.

Another important benefit of nanogrids is their interconnectivity to a larger scale smart grid. An aggregated network of nanogrids can be very valuable to the grid. Currently, solar is generating power at times of the day when energy is at lowest demand. Besides simply turning off the solar panel production, through a practice called curtailment, the utilities do not have an effective way of managing all the separate points of intermittent connection. They don’t have a way to store the solar power effectively. In addition, at times when the utilities need the power most, current independent solar systems cannot necessarily supply it because they lack the intelligent technology to do so. This is partially due to the fact that the solar energy is not being produced at those critical times of the day. Nanogrids can help solve this problem.

read more
Fractal Energy Storage ConsultantsNanogrids: A New Opportunity for the Solar Industry & its Customers

Guidehouse: Utility-Scale Energy Storage Industry ‘Blossoming’ in Several US States

on July 22, 2020
Energy-Storage-News

The US utility-scale energy storage market is projected to maintain its position as the world’s largest and fastest-growing in the coming years, according to a new report from Guidehouse Insights.

Despite the rapid growth, the development of new utility-scale energy storage systems (ESSs) remains highly concentrated in a few states. The market research provider’s report shows California, New York, and Texas lead the top 10 US energy storage markets.

Alex Eller, senior research analyst with Guidehouse Insights, said utility-scale energy storage in the US “has quickly transformed from an expensive and poorly understood niche technology to a major source of new investment”.

“While several states have seen a blossoming storage industry, many others have little to no utility-scale energy storage currently operating,” he said.

“However, this reality is expected to change quickly as the falling costs of batteries and other technologies allow utility-scale energy storage projects to compete directly with conventional fossil fuel systems.”

The report, ‘Leading US States for Utility-Scale Energy Storage’, says the US utility-scale energy storage market is the most diverse in terms of the uses of energy storage and the number of competitors and technologies.

It notes that while the market is highly fragmented, additional states are quickly emerging as strong markets. However, the report warns of varying market structures, regulations and economic applications for projects in different states.

read more
Fractal Energy Storage ConsultantsGuidehouse: Utility-Scale Energy Storage Industry ‘Blossoming’ in Several US States

Value of Energy Storage Lies in Increased Renewables and Capacity Deferrals

on July 22, 2020
Renew-Economy

A new study has concluded that the economic value of energy storage increases as variable renewable energy generation increases its share of electricity supplied, however, the degree to which such variable renewable energy sources can be deployed hinges upon the future availability and cost of energy storage technologies.

The new study recently published in the journal Applied Energy was authored by researchers from the Massachusetts Institute of Technology (MIT) and Princeton University’s Andlinger Center for Energy and the Environment (ACEE), supported by General Electric (GE).

The research analysed battery storage technology in an effort to determine the key drivers impacting its economic value, how that value changes with increasing deployment over time, and the implications for energy storage’s long-term cost-effectiveness.

“Battery storage helps make better use of electricity system assets, including wind and solar farms, natural gas power plants, and transmission lines, and can defer or eliminate unnecessary investment in these capital-intensive assets,” said Dharik Mallapragada, research scientist at the MIT Energy Initiative (MITEI) and the paper’s lead author.

“Our paper demonstrates that this ‘capacity deferral,’ or substitution of batteries for generation or transmission capacity, is the primary source of storage value.”

There are other sources of value for energy storage identified by the report, including its ability to provide operating reserves to electricity system operators, avoiding fuel cost and wear & tear incurred by cycling on and off gas-fired power plants, as well as shifting energy from low price periods to high value periods.

However, the paper conclusively showed that these sources are of secondary importance compared to the value energy storage creates by helping to avoid capital-intensive capacity investments.

read more
Fractal Energy Storage ConsultantsValue of Energy Storage Lies in Increased Renewables and Capacity Deferrals

Funding For Battery Storage and Smart Grid Companies Drops in the First Half of 2020

on July 22, 2020

Total corporate funding (including venture capital funding, public market, and debt financing) for battery storage, smart grid, and energy efficiency companies in 1H 2020 dropped 38% year-over-year (YoY) with $1.5 billion compared to $2.4 billion raised in 1H 2019. That’s according to a new report from Mercom Capital Group.

The report notes that global VC funding (venture capital, private equity, and corporate venture capital) for battery storage, smart grid, and efficiency companies in 1H 2020 was 51% lower with $858 million compared to over $1.8 billion in 1H 2019.

In Q2 2020, VC funding for battery storage, smart grid, and efficiency companies increased with $605 million in 26 deals compared to $252 million in 16 deals in Q1 2020. Funding amounts were 61% lower YoY compared to the $1.5 billion raised in 21 deals in Q2 2019. The decrease in funding activity was primarily due to a billion-dollar deal in the battery storage sector in Q2 2019.

Battery Storage
VC funding in battery storage companies in 1H 2020 was down 61%, with $536 million in 14 deals compared to $1.4 billion in 17 deals in 1H 2019. The report claims the decrease was due to Northvolt’s $1 billion funding round in Q2 2019.

The top 5 VC funding deals in 1H 2020 were the following: QuantumScape raised $200 million, ProLogium Technology raised $100 million, Demand Power Group secured $71 million, Highview Power secured $46 million, and Nanotech Energy raised $28 million. A total of 26 VC investors participated in battery storage funding in 1H 2020.

Announced debt and public market financing activity in the first half of 2020 ($180 million in five deals) was 67% lower compared to the first half of 2019 when $547 million was raised in five deals.

There were five announced battery storage project funding deals in 1H 2020, bringing in a combined $26 million compared to $499 million in four deals in 1H 2019.

In 1H 2020 there were a total of eight (all undisclosed) battery storage M&A transactions compared to six transactions (one disclosed) in 1H 2019.

read more
Fractal Energy Storage ConsultantsFunding For Battery Storage and Smart Grid Companies Drops in the First Half of 2020

Enabling The Grid of The Future Requires More Than One Energy Storage Technology in The Toolkit

on July 21, 2020
Energy-Storage-News

Energy generation has never been a single technology market. Gas, coal, nuclear, hydro, solar and wind all make a significant contribution to our global generation capacity, and each play different roles based on their specific characteristics.

For instance, nuclear provides low-carbon baseload, whilst gas generally meets more flexible, peaking requirements with a higher carbon cost. Renewables, once a high-priced subsidy-only option, are now considered to be a key low-cost and low carbon part of our future generating mix.

The energy storage market is no different. I don’t believe there will be a ‘one size fits all’ technology solution, given the wide variety of technical requirements and market designs that allow grids to operate effectively.

Could one energy storage technology technically perform every conceivable requirement? Yes, quite possibly, but specialisation in the market will deliver far more economically optimal solutions.

Approaching the roles that storage can play with a single technology would be like leaving your toolkit at home and turning up to a DIY job with just a hammer – it’s capable of a great many things, but it really isn’t the best tool to paint the bedroom with.

Differentiation will emerge as energy storage grows in future grid scenarios
Instead of a one-size-fits all situation, I believe the future will see a segmentation in the energy storage market, driven by myriad factors including; technology type, age, warranty limitations, control systems, financing structures and operating strategies. The technical and economic factors driving this segmentation will necessitate different storage products for different applications; once deployed, a further segmentation for dispatch will evolve.

We can see this today, for example within gas there are a wide range of solutions, from reciprocating engines to combined-cycle gas turbines (CCGTs). Selection amongst these competing solutions is made at the time of deployment based on the specific purpose they are intended to serve. During their operational lifetime, each generator is dispatched to meet market requirements at lowest cost. The same will be true for energy storage. Within a storage fleet you’re going to have older installations (based on earlier technologies) coming to the end of their life, competing in the same markets alongside newer systems, with different chemistries, warranties and operating strategies. It is easy to see how differentiation will emerge as energy storage grows in future grid scenarios.

read more
Fractal Energy Storage ConsultantsEnabling The Grid of The Future Requires More Than One Energy Storage Technology in The Toolkit

Solar+Battery in One Device Sets New Efficiency Standard

on July 21, 2020
Ars-Technica

The drop in battery prices is enabling battery integration with renewable systems in two contexts. In one, the battery serves as a short-term power reservoir to smooth over short-term fluctuations in the output of renewable power. In the other, the battery holds the power for when renewable power production stops, as solar power does at night. This works great for off-grid use, but it adds some complications in the form of additional hardware to convert voltages and current.

But there’s actually an additional option, one that merges photovoltaic and battery hardware in a single, unified device that can have extensive storage capacity. The main drawback? The devices have either been unstable or have terrible efficiency. But an international team of researchers has put together a device that’s both stable and has efficiencies competitive with those of silicon panels.

Solar flow batteries
How do you integrate photovoltaic cells and batteries? At its simplest, you make one of the electrodes that pulls power out of the photovoltaic system into the electrode of a battery. Which sounds like a major “well, duh!” But integration is nowhere near that simple. Battery electrodes, after all, have to be compatible with the chemistry of the battery—for lithium-ion batteries, for example, the electrodes end up storing the ions themselves and so have to have a structure that allows that.

So, the researchers used a completely different sort of chemistry. Flow batteries use solutions of two chemicals that can undergo charge-exchange reactions, shifting them between two chemical states. The battery basically borrows those charges in order to produce current when discharging, or it pumps charges back in to shift the chemicals to their alternate state, thus charging the battery. Flow batteries have the advantage that their total storage capacity is simply dependent upon the total volume of solution you use.

While there are many chemistries capable of working in a flow battery, the researchers started with their photovoltaic system and used that to choose the battery’s chemistry.

Even here, they didn’t exactly use off-the-shelf hardware. There was silicon involved, but it was part of a two-layer solar cell. In this setup, one photovoltaic material absorbs a set of wavelengths that aren’t absorbed by a second; the first layer, by contrast, is transparent to those wavelengths absorbed by the second. This allows a single cell to absorb a much broader range of wavelengths than would be possible otherwise, upping its overall efficiency.

For their device, the bottom layer was silicon. On top of that is a layer of perovskite photovoltaic material. Perovskites are a potential next-generation solar material, useful because they’re made from cheap ingredients and can be created simply by evaporating a solution of the perovskite. Unfortunately, these chemicals also have a propensity to decay, which has made for short lifetimes in many experimental setups. The researchers here don’t try to solve all of these problems; they simply use a perovskite-on-silicon photovoltaic setup and don’t try to run it for long enough that chemical decay is an issue.

read more
Fractal Energy Storage ConsultantsSolar+Battery in One Device Sets New Efficiency Standard

Florida Utility Pens Solar-Plus-Storage PPA on Its Way to Renewables Goal

on July 21, 2020
PV-Tech

Floridian utility Gainesville Regional Utilities (GRU) has penned a power purchase agreement with developer Origis Energy for a solar-plus-storage project in the state.

The Solar 6 large-scale solar project is claimed to be the first of its kind in GRU’s service area and will combine 50MW of solar PV with 12MW of energy storage.

It will be constructed by Origis Energy in Alachua County and is slated for completion in late 2022.

Ed Bielarski, general manager at GRU, said the project was the “next step forward” toward meeting a target of deriving 100% of its power from renewable sources by 2045, claiming the agreement to be an “all-around win for our customers, our city and the environment”.

The City of Gainesville approved a target of 100% power from renewables in 2018, with GRU developing its renewables portfolio as it progresses towards that goal. To date, its resources include the 103MW biomass-fired Deerhaven Renewable Generation Station, 3.6MW of landfill-gas fired units and 18.5MW of feed-in tariff accredited solar.

Additionally, it has approximately 9MW of customer-owned and net-metered solar currently connected to its distribution system.

“Solar plus storage on this scale will help Gainesville achieve its 100 percent renewable energy goal,” said Johan Vanhee, chief commercial officer and chief procurement officer at Origis Energy. “We are honored to bring cost effective power to GRU customers and applaud City leaders as they continue to model clean energy leadership in the Sunshine state.”

Origis Energy is also developing a 57.5MW solar farm in Mitchell County, Georgia, together with state utility Georgia Power.

In early 2019, the renewable energy developer completed a 50MW, 109-hectare PV project together with Reedy Creek Improvement District in Florida, to provide clean energy to the Walt Disney World Resort.

read more
Fractal Energy Storage ConsultantsFlorida Utility Pens Solar-Plus-Storage PPA on Its Way to Renewables Goal

Cobalt-Free Battery Leans on Nickel For Extra Energy Storage

on July 20, 2020

As a relatively rare and expensive heavy metal, cobalt serves as a vital but costly part of today’s lithium batteries, not just in terms of dollars but also for the environment and well-being of those tasked with mining it. A new battery design from the University of Texas at Austin may help address these issues, with the team demonstrating a new type of battery architecture that performs on par with conventional devices, while being entirely free of cobalt.

Due to its excellent conductivity and durability throughout charging cycles, cobalt has served as a key material in the cathode of lithium batteries since their inception, but it has come under fire lately due to the harmful effects of the related mining operations. These include exposing workers to dangerous levels of toxic metals, but also the degradation of natural landscapes and water supplies.

So there is considerable interest in sourcing alternatives, with some promising possibilities to emerge of late, including an experimental battery developed at IBM that uses materials sourced from saltwater instead.

The University of Texas at Austin team is throwing another candidate into the mix, having developed a new class of cathodes that don’t involve cobalt at all. Generally speaking, the cathode of a lithium battery is made from a mix of metal ions including cobalt, nickel and aluminum. Cobalt is the most expensive of these elements and can account for around half the materials cost of the entire battery.

“Cobalt is the least abundant and most expensive component in battery cathodes,” says study author Arumugam Manthiram. “And we are completely eliminating it.”

The team achieved this by tweaking the recipe to produce a cathode made of 89 percent nickel, with the rest formed from manganese and aluminum. The key, the researchers say, is that during the synthesis the ions of these different metals are distributed evenly across the cathode. This overcomes a key shortcoming with other designs, where the ions bunch up in places and degrade the performance of the battery.

read more
Fractal Energy Storage ConsultantsCobalt-Free Battery Leans on Nickel For Extra Energy Storage

44% of Businesses Considering Microgrids: Survey

on July 20, 2020

In a new report by Deloitte, 44% of businesses who responded to a national survey said they are considering microgrids, an increase of nine percentage points over last year’s survey.

In “Deloitte Resources 2020 Study,” 54% of those considering microgrids said they have critical operations that require uninterrupted power supply, said Marlene Motyka, principal, Deloitte Transactions and Business Analytics. Fifty-one percent said they have experienced increases in the number of outages.

The study did not pin down where the survey participants were experiencing outages. Major storms, fires and Public Safety Power Shutoffs in California are among the possible reasons, she said.

“They know they have to be resilient and more self sufficient,” she said.

Concern about resilience driving microgrids
Resilience was on the top of both residential and business customers’ interest list.

Fifty-two percent of business respondents said they’re concerned about an interruption to their electricity supply due to a cybersecurity event on the electric grid. And 37% of residential consumer respondents echoed this concern.

Residential customers showed that they know where to find resilience. More than half of these customers said they were interested in solar if combined with batteries.

“They see that if they have solar plus a battery, they can save and shore up resilience. Nearly half of residential respondents expressed a concern about outages from natural disasters or storms,” Motyka said.

read more
Fractal Energy Storage Consultants44% of Businesses Considering Microgrids: Survey

Replacing Lithium With Sodium in Batteries

on July 20, 2020
Phys-Org

An international team of scientists from NUST MISIS, Russian Academy of Science and the Helmholtz-Zentrum Dresden-Rossendorf has found that instead of lithium (Li), sodium (Na) “stacked” in a special way can be used for battery production. Sodium batteries would be significantly cheaper and equivalently or even more capacious than existing lithium batteries. The results of the study are published in the journal Nano Energy.

It is hard to overstate the role of lithium-ion batteries in modern life. These batteries are used everywhere: in mobile phones, laptops, cameras, as well as in various types of vehicles and space ships. Li-ion batteries entered the market in 1991, and in 2019, their inventors were awarded the Nobel Prize in chemistry for their revolutionary contribution to the development of technology. At the same time, lithium is an expensive alkaline metal, and its reserves are limited globally. Currently, there is no remotely effective alternative to lithium-ion batteries. Due to the fact that lithium is one of the lightest chemical elements, it is very difficult to replace it to create capacious batteries.

The team of scientists from NUST MISIS, Russian Academy of Science and the Helmholtz-Zentrum Dresden-Rossendorf, led by Professor Arkadiy Krashennikov, proposes an alternative. They found that if the atoms inside the sample are “stacked” in a certain way, then alkali metals other than lithium also demonstrate high energy intensity. The most promising replacement for lithium is sodium (Na), since a two-layer arrangement of sodium atoms in bigraphen sandwich demonstrates anode capacity comparable to the capacity of a conventional graphite anode in Li-ion batteries—about 335 mAh/g against 372 mAh/g for lithium. However, sodium is much more common than lithium, and therefore cheaper and more easily obtained.

A special way of stacking atoms is actually placing them one above the other. This structure is created by transferring atoms from a piece of metal to the space between two sheets of graphene under high voltage, which simulates the process of charging a battery. In the end, it looks like a sandwich consisting of a layer of carbon, two layers of alkali metal, and another layer of carbon.

read more
Fractal Energy Storage ConsultantsReplacing Lithium With Sodium in Batteries